Keyspan LNG, LP (Alng)

Third Revised Volume No. 1

Effective Date: 01/27/2003, Docket: RP03-241-000, Status: Effective

Original Sheet No. 56 Original Sheet No. 56 : Effective

Joseph A. Vaszily, Vice President

GENERAL TERMS AND CONDITIONS

(continued)

13. PROCEDURES FOR AVOIDANCE OF PREGRANTED ABANDONMENT (continued)

13.7 Best Bid. KLNG shall review all bids from Potential Customers

received pursuant to Section 13.5, which have not been rejected by

KLNG, to determine which bid is the Best Bid. For purposes of this

Section 13, the Best Bid shall be the bid with the longest term which

offers the maximum applicable rate for the full term of the bid. If

no bidder offers the maximum rate for the full term of the bid, the

Best Bid shall be that bid that KLNG determines in its discretion,

reasonably exercised, is likely to maximize its revenue earning

potential, taking into account current and future anticipated demand

for firm capacity.

13.8 Matching the Best Bid. Upon written notification from KLNG of the

terms of the Best Bid, Customer shall have the right for a thirty-day

period to notify KLNG whether the Customer is willing to match the

Best Bid. Failure to notify KLNG in writing within said thirty-day

period constitutes a non-revocable waiver of Customer's right to

match the Best Bid. In order to match the Best Bid, Customer must

agree to a rate equal to or greater than the rate set forth in the

Best Bid and agree to execute a service agreement for a contract term

equal to or longer than the contract term set forth in the Best Bid,

up to a period of five (5) years; provided, however, the maximum rate

an existing Customer must match is the maximum rate KLNG can charge

under the agreement that is subject to the Customer's right to match

the Best Bid.

13.9 Mutual Agreement. In the event KLNG does not receive any bids

pursuant to Section 13.5 or KLNG rejects all bids received, KLNG and

Customer may mutually agree upon the terms and conditions under which

Customer shall be entitled to retain its capacity and continue to

receive service. In the event KLNG and Customer have not reached

agreement on the terms and conditions under which service will be

extended before the termination date of the service agreement, at

Customer's election, service for all or part of the contractual

quantity will be extended for a term to be specified by the Customer,

so long as Customer agrees to pay the maximum rate.